The Vietnam semiconductor market was valued at USD 7.7 Billion in 2025 and is projected to reach USD 17.0 Billion by 2034, growing at a CAGR of 9.21% during the forecast period of 2026-2034. Growth is driven by rapid adoption of advanced technologies like IoT, AI, and 5G, increasing consumer electronics demand, urbanization, and supportive government infrastructure and incentives. Vietnam's strong electronics manufacturing base and strategic supply chain positioning further boost market expansion.
Study Assumption Years
Base Year: 2025
Historical Years: 2020-2025
Forecast Period: 2026-2034
Vietnam Semiconductor Market Key Takeaways
The Vietnam semiconductor market size was USD 7.7 Billion in 2025.
The market is projected to grow at a CAGR of 9.21% during 2026-2034.
The market forecast value is USD 17.0 Billion by 2034.
Massive FDI inflows worth $26 billion in 2024, with 67% directed to high-tech industries including semiconductors.
Government promotes innovation through tax incentives, subsidies, and development of high-tech special economic zones.
Growing middle class and domestic consumption drive demand for smartphones, smart home appliances, and IoT devices.
Expansion of automotive production to nearly 388,500 units in 2024, a 27% increase over 2023, boosts semiconductor needs.
Sample Request Link: https://www.imarcgroup.com/vietnam-semiconductor-market/requestsample
Market Growth Factors
Foreign direct investment from foreign technology firms like Samsung, Intel, and Foxconn mainly drives the semiconductor manufacturing industry in Vietnam. In 2024, $26 billion of FDI went to the manufacturing sector, and 67% was foreign-made. This pattern fuels the country's semiconductor and electronics industries. Government supports the sector through the National Strategy on Science, Technology, and Innovation 2030, grants tax breaks, provides subsidies, and develops infrastructure projects because these actions encourage investment and improve local capabilities.
Adopting advanced technologies like the Internet of Things (IoT), Artificial Intelligence (AI), and 5G networks propels market growth forward. Disposable income rises along with domestic consumption that grows to demand more consumer electronics like smartphones, tablets, smart TVs, and smart home devices. The Vietnamese printed electronics market is expected to grow at a compound growth rate (CAGR) of 7.80% within the years 2024 and 2032.
Another source of growth has been automotive and industrial. In 2024, the automotive sector manufactured nearly 388,500 units with a 27% growth beyond 2023, which increased the demand for semiconductor products like infotainment, navigation, driver assistance systems and electric vehicle technology. Industries use industrial automation, industrial robots, and smart manufacturing solutions through modernization programs like Industry 4.0 which causes semiconductor demand for control, precision, and connectivity. For example, US chipmaker Nvidia has expressed an interest toward developing manufacturing plants in Vietnam.
Market Segmentation
By Component:
Memory Devices: Include DRAM, SRAM, and flash memory used in consumer electronics, automotive and industrial sectors, supported by growing local assembly and test operations.
Logic Devices: Consist of microprocessors, FPGAs, and ASICs used in computing, networking, and mobile phones, driven by Vietnam's strong assembly industry and R&D.
Analog IC: Process real-world signals and are widely used in sensors, power management, and communication systems, critical for smart devices and industrial automation.
MCU (Microcontroller Units): Integrated chips used in embedded systems within appliances, vehicles, and IoT devices; demand rises with expanding electronics production.
Sensors: Measure physical input like temperature and pressure; vital for smart devices, automotive safety, and industrial controls, with increased use in wearables and smart appliances.
Discrete Power Devices: Diodes and transistors essential for power supply units, motor drives, and energy-efficient systems, growing with renewable energy and EV infrastructure.
Others: Specialty semiconductors including optoelectronics, RF devices, and custom ICs for telecom, healthcare, and aerospace applications.
By Material Type:
Silicon: The primary semiconductor material for industrial applications and consumer electronics due to abundance and processing maturity.
Germanium: Used in optical devices, infrared sensors, and specialized transistors, important in defense and telecom industries.
Gallium Arsenide (GaAs): Enables high-speed, efficient RF and optoelectronic components, crucial for smartphones and 5G infrastructure.
Others: Include silicon carbide (SiC) and gallium nitride (GaN), offering performance benefits in high-temperature and power conditions for electric vehicles and renewable energy.
By Application:
IT and Telecommunication: Semiconductor demand peaks for data centers, networking, and computers amid fast digitalization and 5G rollout.
Defense and Military: High-reliability semiconductors needed for radar, communication systems, drones, and cyber warfare modernization.
Industrial: Advanced sensors, microcontrollers, and power devices drive automation, robotics, and smart manufacturing productivity.
Consumer Electronics: Semiconductors enable devices like smartphones and TVs in Vietnam's large-scale production for global brands.
Automotive: Growing use in engine control, safety, infotainment, and electric drivetrains, boosted by investments like VinFast.
Others: Include medical, aerospace, and agricultural uses in diagnostic equipment, satellite technology, and smart farming machinery.
Regional Insights
Northern Vietnam leads semiconductor and electronics production with prominent facilities from Samsung, Foxconn, and Intel. Its proximity to China, developed infrastructure, government-backed industrial parks, and strong logistics and workforce connectivities make it a favored FDI destination. Central Vietnam is emerging with government support, notably in Da Nang, focusing on high-tech manufacturing. Southern Vietnam, including Ho Chi Minh City, hosts tech startups, R&D, and major assembly players in high-tech parks like Saigon Hi-Tech Park with Intel presence.
Recent Developments & News
April 2025: Marvell Group pledged to help train 50,000 semiconductor engineers by 2030 through partnerships with Vietnam’s National Innovation Centre and universities to expand R&D and training.
April 2025: Da Nang invested USD 32 million in a first-phase 1,000-rack data center project, aiming to become a global semiconductor and AI hub by 2030 through infrastructure expansion and global partnerships.
March 2025: Betamek Bhd engaged in talks for automotive sector collaboration in Vietnam and Thailand, identifying Vietnam as a key market.
February 2025: Amkor Technology Vietnam announced plans to triple its semiconductor output in Bac Ninh from 1.2 billion to 3.6 billion items annually, creating 7,200 jobs by October 2025.
Key Players
Samsung
Intel
Foxconn
Nvidia
Marvell Group
Betamek Bhd
Amkor Technology Vietnam
Customization Note:
If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.
About Us
IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
Contact Us
IMARC Group,
134 N 4th St. Brooklyn, NY 11249, USA,
Email: sales@imarcgroup.com,
Tel No: (D) +91 120 433 0800,
United States: +1-201971-6302
